English Translation

S's memo Prague, 10 November 39. La/W Department: Subject: Action M. On behalf of the Government Councillor Pg. Gies, I agreed on the 3.XI. with sectional councillor Dr. Hoffmann for the acquisition of the company Fuchs. Hoffmann informed me that the company Fuchs is affiliated with a paper bag production, which is under patent protection for the NAPIAG (Natron- Papier-Industrie A.G. Wien), therefore the company Fox appears nue as licensee for the NAPiAG. The NAPI AG has now also submitted the application for acquisition of the company fox. It would be necessary first to reach an agreement with NAPIAG. At the subsequent meeting with Mr. Wedelstädt, the plan was considered to set up a new company, which the company Fuchs acquires and in which the Escomptebank group as trustee and the NAPI AG with 70-75 % and the Group M with 30-25 % will be involved. After agreement with the NAPIAG, the approval was to be granted. Monday, 6.ll. after consultation with sectional councillor Dr. Hoffmann, Dir. Volckmar took up the negotiation with the representative of the N APIAG. Dir. volckmar rejected the above-mentioned proposal, since the paper mill A.G. Spiro was already involved with 25% in the new foundation he intended. On Wednesday 8th, at the request of the government councillor Pg. Gies, I informed Staffen and the managing director of the SudetenGerman office for paper and cardboard Dr. Chlumetzky about the action M. Gauamtsleiter and then negotiated with you. Volckmar and further with the representative of the company Spiro. My proposal went there the group M. with 25% to participate in the new company and to secure only a representation with the German group, in order to find the possibility for the unresolved meeting with the group M.. Dir. Volck- mar also rejected this proposal on the grounds that he did not intend to take over the company Fuchs in Bausch and Bogen, but that he was only interested in the sector of paper sack production which was in charge of NAPIAG. As far as the paper bag production sector is concerned, he saw no possibility and no reason to agree with a foreign participation and a right of representation; the machinery for the production of sacks and the licence for this production belonged to Napiag and he had an option right which had already been used. In any case, it would be forced for economic reasons to look for a new object with a bonded connection, since the present production site does not provide the conditions which a rational economy guarantees according to the traps of the customs borders. Furthermore, he describes Fuchs as a descending company which, in its other production, does not guarantee good economic development. Dr. Chlumetzky claims that: